Forum Replies Created
Thanks, Terry & GP
Cruiser
Yes, although you would have to have already suffered some loss in order to sue using those sections of the TPA. i.e. you bought, and then discovered the house was different in a way that made it of less value than you bought at, so you sue for the difference.
Such activity would also be a breach of misleading and deceptive prohibitions under the Fair Trading Act. Directors of Fair Trading in each State have the power to take action themselves, so if anyone does see these kinds of things happening it would be really helpful to everyone if they could make a written complaint to their Minister or Director for Fair Trading. Otherwise, the scoundrels get away with it.Cruiser
Shellby, apparently John Edwards (Residex) has been saying that certain areas in Sydney will have a mini boom this year. Suppose it depends which areas.
From posts on this forum, it looks like prices in certain places in WA are fast on the rise.
I suspect moderate rises will happen in regional towns.Hi Marisa,
This is interesting. You mean $250k for a house and land package? Or just the land? Or with an existing house?
Scuse my ignorance – where is Byford?Hi guys,
thanks for your thoughts. Simon, that’s a good point. I was assuming that I don’t have to settle unless everything has approval and all requisitions are satisfied, but now that you mention it I am not so sure. Will check contract on Monday (it’s at work), and ask the sol.
Well, I didn’t hear back from the vendor yet so I guess I will have to make another call.
Marc, yes it is a good rent. The property’s in Cloncurry, which is largely a mining town, although one prospective tenant was moving from Townsville to build a supermarket there, and Qld dept of main roads has a main depot there, plus a lot of trucking company employees seem to live there. The mine subsidises the rents I think. In fact, I was disappointed because it was rented to the mine a while ago for $350/week but I can’t get that. At $330 it doesn’t meet the “11 second solution” does it? Nevertheless it is good.Cheers
CruiserGP,
I think Terry was talking about the discretionary trust in the second quote of his in your post. Yes, losses can be carried forward, but that doesn’t help me with affordability in the meantime.Terry, with hybrid trusts, if I am the borrower, then I/my assets are vulnerable in an asset protection sense? This was why I was advised to go the discretionary trust route.
Cruiser
I think a bit of both is the best way. Get a PM – but monitor them. Know the law. Write breach notices yourself when you know tenants are behind.
PMs often don’t understand the relevant legislation at all. They also often don’t do even the minimum inspections they’re supposed to, as Dazzling has recounted. I recently met a woman in exactly the same position as Dazzling found him/herself, she’s decided to go the PM in the Consumer Trader Tenancy Trib (NSW) Residential division to get her out of pocket costs back.
I haven’t seen PMs work hard for their money.But even if it could distribute losses, I (as the primary income earner) am allowed to have nothing to do with the trust, therefore my income cannot get the advantage; only my partner’s much smaller income, so it still would not work.
I’m not saying Which Bank doesn’t lend to trusts. It’s just that most of their staff do not understand the first thing about doing so. So they take forever to package them.Garry Tierney is excellent. 07 3278 5388. Good rates – and as thorough as you could wish for.
CruiserTerry,
If a trust has no income, then there is no depreciation advantage, yeah? Whereas if I own in my own name, the depreciation makes a big difference.
I’d like to know which lenders are au fait with trusts – because Which Bank is not.I agree the quoted fees seem good value. I paid $1750 for each, i.e. $3500 for a company and trust. That was through Ed Burton = ripoff, but he represents that his company and trust deeds include everything you need (and that many don’t), so now I have these I never need to go through him again, I would just copy the ones his company drew up and create extra ones (with the help of something like cleardocs maybe), if necessary. I am fast coming to the view that companies and trusts are a waste of time and money, anyway. Banks have a dreadful time trying to lend to the right entity in this setup and they hate it and take forever. Plus, you don’t get the tax advantages of depreciation in such a structure.
Yep: Superior Tax Solutions Pty Ltd
PO Box 2801 Fitzroy Vic 3065
Phone / Fax : (03) 9812 – 2257
They don’t answer the phone, they get you to leave a message and call you back.Cheers
Are any of the areas you’ve mentioned positive-ish Marisa?
Thanks, Betterbiz, sounds like you’re an accountant, I will send you an email. I think your last point is a really good one. I’ve had a company and trust set up for property acquisition – with no info at all on how to run them, and this was annoying.
regardsThanks, Geoff. I have an accountant – haven’t asked them yet about setting one up. I belong to a property investment ‘club’ which says that all SMSFs are not equal, and charges members $1750 to set one up that is supposed to be able to do everything. Do you think that’s ridiculously expensive, or is it within the ballpark?
Regards,
CruiserThanks, Derek.
Cruiser
Adrian Hill is in Melbourne. He has a company called “Superior Tax Solutions.” He understands the concept of positive gearing/cashflow and the methods to achieve it. He’s currently being endorsed by “guru” Ed Burton.
Cheers
CruiserI recently bought a property in outback QLD sight unseen through a buyers agent connected with a seminar giver. I asked her whether the property was in a good area, she said yes. A couple of months later I went there and discovered it was quite the opposite. However, I haven’t had any problem renting it, plus, even tho I had a building etc inspection, I am now told there are multiple things that need fixing – that the inspector did not reveal and which I could not see while I was there. Upshot: while I think it’s desirable to go visit the place first, its also expensive, time consuming and tedious. Visiting will not tell you everything – but it will tell you what sort of area the property is in.
